Handy Company sold 38,000 units of its only product and reported income of $25,000 for the current year.

Contribution Margin Income Statement
For Year Ended December 31
Sales ($50per unit)	$ 1,900,000
Variable costs ($40 per unit)	1,520,000
Contribution margin	380,000
Fixed costs	355,000
Income	$ 25,000

During a planning session for the next years activities, the production manager notes that variable costs can be reduced by 60% by installing a machine that automates several operations. To obtain these savings, the company must increase its annual fixed costs by $540,000. The selling price per unit will not change. ( round your answer to the nearest whole number) Required: (a) Compute the break-even point in dollar sales for next year assuming the machine is installed. (b) Prepare a contribution margin income statement for next year that shows the expected results with the machine installed. (c) Compute the sales level required in both dollars and units to earn $460,000 of target income for next year with the machine installed.